Thank you for Subscribing to Retail Business Review Weekly Brief
Retail Business Review | Tuesday, May 03, 2022
Retailers have concentrated on blockchain to decrease transaction costs, expand into newer channels, and give power to customers.
Fremont, CA: The e-commerce traffic is increasing, and the number of people shopping with Cryptocurrency is also growing. Retailers seek options and procedures to secure transactions and use the new currencies. Blockchain and its added security benefit seem like the most appropriate action for retailers, as it paves the way for numerable opportunities. Some of the blockchain-as-a-solution features are discussed below:
Blockchain Brings Better Security, Lowers the Cost:
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
The cost of transactions through blockchain is lower than that of transactions fulfilled via traditional e-commerce. Public blockchains charge a fee of 1 cent for every transaction, and private ones propose services at a comparatively lesser cost, making blockchain the most favored facilitator of payments transfer. The low costs are an added gain, opening the doors of myriad opportunities for the retailers and customers to make rapid micropayments.
The adoption of blockchain has not only improved the data security levels with its decentralized nature but also makes it extremely difficult for outsiders to hack into the data queue and execute unauthorized actions. This decentralized nature occurs from its opposition to data storage on a central server.
For the infiltration of the network, highly difficult and expensive methods are necessary, as each knot on the network would fight back facing any foreign entity or attack performed on the blockchain.
The only way to bypass the defense system of the blockchain is by a “51 percent attack”, where an attacker will concurrently penetrate the majority of the nodes that are spread worldwide. A similar decentralization also allows increased data reliability, as it defends the companies from data loss due to server downs or failures.
Retailers who Accept Cryptocurrency may Benefit:
Another positive trait of blockchain adoption is enhanced supply chain management. Several large retailers have adopted blockchain to reduce the cost and complexity of the supply chains or are checking blockchain technology for the same purpose.
Blockchain can also help retailers reduce paperwork and other formalities associated with international shipping. “For instance, data from a bill of lading for cargo shipments can be manually located on the blockchain at each phase of the supply chain or automatically entered, eliminating the lengthy and costly administrative process of approvals and receipt guarantees,” Practical Ecommerce notes.
“This enables all participants to track the shipment through its journey, verify the product information (such as pallet weight) at every step, and know that the data is accurate and trustworthy.”
Blockchain also empowers retailers to expand into several new channels and attract new shoppers, according to the Practical Ecommerce reports. Many of the emerging marketplaces are lower dimensions when compared to conventional e-commerce channels.
“However,” Practical Ecommerce points out, “the marketplaces provide an option for merchants targeting a cryptocurrency-savvy community or want to extend their retail channel and admire a decentralized model.”
More in News